Oceanteam asks bondholders to approve conversion of debt for equity

By Caroline Salls

Pittsburgh, March 22 – Oceanteam ASA is asking the holders of its senior callable bond issue 2012/2017 to approve a conversion of the bond loan debt for equity, according to a notice released Thursday by bond trustee Nordic Trustee AS.

The trustee said Oceanteam’s secured vessel loan lenders are refusing to consent for distribution of available funds.

As a result, the trustee said the company’s restructuring is incomplete and its liquidity situation in strained.

The trustee said Oceanteam is experiencing difficulties in funding its day-to-day business, is unable to service its debt obligations and may be subject to bankruptcy and/or forced liquidation.

According to the release, further restructuring is needed for the company “to continue operations and remain in existence.”

Nordic Trustee said the proposed conversion would be completed through a share capital increase, and Oceanteam’s share contribution claim would be settled by way of setoff of the bond loan debt, including interest.

The preferential rights of existing shareholders would be set aside under the proposed restructuring.

In order to ensure future operations and allow for adequate liquidity, the trustee said it is also “crucial that the bondholders additionally subscribe for new shares in the company” in a minimum NOK 20 million and maximum NOK 100 million share issue to be completed following conversion.

Under the proposal, $66.63 million outstanding on the bond loan, plus $440,518 in interest, would be converted into 670.74 million of new shares with a face value of NOK 0.50.

Any interest accrued on the bonds from and including Feb. 28 will be waived.

The subscription amount per share would be $0.10.

The deadline for bondholders to vote on the proposal is 7 a.m. ET on April 11.

Oceanteam consists of two operating segments – Oceanteam Shipping and Oceanteam Solutions. Oceanteam Shipping owns, charters and manages deep-water offshore support vessels and fast support vessels. Oceanteam Solutions provides offshore solutions. The company is based in Bergen, Norway.

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